Aldrees gets CMA nod to raise capital to SAR 1B via bonus shares

Logo of Aldrees Petroleum and Transport Services Co.

The Capital Market Authority (CMA) approved the application from Aldrees Petroleum and Transport Services Co. to increase its capital from SAR 750 million to SAR 1 billion through a bonus share distribution, the market regulator said in a statement today, March 5.

Accordingly, one bonus share will be issued for every three shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by the company's board.

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The capital top-up will be funded by transferring SAR 250 million from retained earnings. Thus, the number of the company's shares will increase by 25 million to 100 million.

The CMA added that the company's extraordinary general assembly meeting (EGM) should be held within six months from this approval date, provided that Aldrees shall satisfy all regulatory requirements and applicable laws.

The company's board of directors recommended on Jan. 25, a 33.33% capital increase, through distributing one bonus share for every three shares held, according to Argaam's data.